Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2024 |
Schedule of components of the provision (benefit) for income taxes, net |
The income tax provision for the years ended December 31, 2024 and 2023 consists of the following: | | | | | | | | | December 31, | | | 2024 | | 2023 | Current expense (benefit) | | | | | | | Federal | | $ | 152,466 | | $ | 1,319,280 | State | | | — | | | — | Deferred expense (benefit) | | | | | | | Federal | | | (340,644) | | | (457,790) | State | | | (129,941) | | | (192,083) | Change in Valuation Allowance | | | 470,585 | | | 649,873 | Income tax provision | | $ | 152,466 | | $ | 1,319,280 |
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Schedule of provision (benefit) for income taxes |
A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2024 and 2023 is as follows: | | | | | | | | December 31, | | | | 2024 | | 2023 | | Statutory federal income tax rate | | 21.00 | % | 21.00 | % | State taxes, net of federal tax benefit | | 2.62 | % | (4.74) | % | Change in fair value of warrant liabilities | | (17.20) | % | 0.28 | % | Change in valuation allowance | | (9.50) | % | 16.05 | % | Income tax provision | | (3.08) | % | 32.59 | |
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Schedule of significant components of company's net deferred income tax assets |
The Company’s net deferred tax assets at December 31, 2024 and 2023 is as follows: | | | | | | | | | December 31, | | | 2024 | | 2023 | Deferred tax assets: | | | | | | | Capitalized start-up costs | | $ | 1,276,291 | | $ | 877,440 | Net operating loss carryforward | | | 56,503 | | | 39,845 | Total deferred tax assets | | | 1,332,794 | | | 917,285 | Valuation allowance | | | (1,332,345) | | | (861,760) | Net deferred tax assets | | | 449 | | | 55,525 | | | | | | | | Deferred tax liabilities: | | | | | | | Accrued dividends on marketable securities held in Trust Account | | | (449) | | | (55,525) | Total deferred tax liabilities | | | (449) | | | (55,525) | Net deferred tax assets (liabilities) | | $ | — | | $ | — |
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Angel Studios, Inc. CIK: 0001671941 |
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Schedule of components of the provision (benefit) for income taxes, net |
| | | | | | | | | | | | 2024 | | 2023 | | 2022 | U.S. Federal: | | | | | | | | | | Current | | $ | (251,837) | | $ | 1,098,349 | | $ | (305,933) | Deferred | | | 3,219,201 | | | (3,219,201) | | | (366,667) | Total | | | 2,967,364 | | | (2,120,852) | | | (672,600) | U.S. State: | | | | | | | | | | Current | | | (213,880) | | | 204,535 | | | (24,306) | Deferred | | | 781,118 | | | (781,118) | | | (68,279) | Total | | | 567,238 | | | (576,583) | | | (92,585) | Provision (benefit) for income taxes, net | | $ | 3,534,602 | | $ | (2,697,435) | | $ | (765,185) |
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Schedule of provision (benefit) for income taxes |
| | | | | | | | | | | | 2024 | | 2023 | | 2022 | Federal income tax at statutory rates | | $ | (18,150,928) | | $ | 1,326,085 | | $ | (3,016,213) | State income tax at statutory rates | | | (2,975,942) | | | (228,939) | | | (422,908) | DTA adjustment | | | (235,346) | | | (115,470) | | | — | Change in valuation allowance | | | 25,861,296 | | | (2,348,227) | | | 2,348,227 | Federal tax credits | | | (789,620) | | | (1,216,878) | | | — | Other | | | (174,858) | | | (114,006) | | | 325,709 | | | $ | 3,534,602 | | $ | (2,697,435) | | $ | (765,185) |
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Schedule of significant components of company's net deferred income tax assets |
| | | | | | | | | | | | 2024 | | 2023 | | 2022 | Net operating loss carryforwards | | $ | 18,872,026 | | $ | — | | $ | 1,044,440 | Research and development | | | 5,564,482 | | | 3,787,461 | | | 1,108,958 | Digital asset impairment | | | 1,491,329 | | | 1,920,228 | | | 1,919,244 | Research and development credits | | | 1,180,635 | | | 229,867 | | | — | Depreciation and amortization | | | (190,587) | | | (330,698) | | | (305,337) | Impairment of equity investment | | | 243,557 | | | — | | | — | Accruals and reserves | | | (310,990) | | | (554,006) | | | (317,970) | Deferred gain on sale | | | (989,156) | | | (1,052,533) | | | (1,101,108) | Valuation allowance | | | (25,861,296) | | | — | | | (2,348,227) | | | $ | — | | $ | 4,000,319 | | $ | — |
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